CBI registers fresh case in alleged ₹397-crore TANGEDCO transformer procurement irregularities
The Central Bureau of Investigation (CBI) has registered a fresh First Information Report (FIR) in connection with alleged irregularities in the procurement of distribution transformers by the Tamil Nadu Power Distribution Corporation (TNPDCL), formerly known as TANGEDCO. The case relates to transformer purchases made between 2021 and 2023 when V. Senthil Balaji was serving as the State’s Electricity Minister.
The investigation stems from allegations that the state utility suffered a financial loss of around ₹397 crore due to irregularities in the tendering and procurement process. The accusations concern multiple tenders issued for the purchase of thousands of distribution transformers intended for the state’s power distribution network.
According to records examined during earlier court proceedings, questions were raised over the bidding process after several participating firms reportedly quoted identical rates in a number of tenders. Petitioners who challenged the procurements argued that the pattern suggested possible cartelisation and compromised competitive bidding.
The matter reached the Madras High Court through public interest litigations filed by anti-corruption activists and opposition representatives. The petitioners alleged that transformer prices approved through the tenders were significantly higher than prevailing market rates and sought an independent probe into the transactions.
Last month, the High Court directed the CBI to conduct a fresh investigation, observing that allegations involving large-scale public procurement and senior public officials warranted an independent inquiry. The court stressed the importance of maintaining public confidence in the investigative process and directed authorities to cooperate with the central agency.